What Is Taxpayers Charter And How Is It Going To Help You?

Prime Minister Narendra Modi launched several reforms to ease taxation norms and build a transparent system. One of the highlights of the scheme is the Taxpayers Charter. Here is how it will help the ordinary taxpayer.

(Representative Image/ Getty)

New Delhi: Prime Minister Narendra Modi today launched several tax reforms as part of the Transparent Taxation scheme. “ The structural reforms in India have today reached a new height and this specific reform in the 21st century namely ‘Transparent Taxation Honouring The Honest will enable faceless assessment, faceless appeal and tax payer charter,”  said Prime Minister Modi during the launch Among many reforms such as Faceless assessment & taxpayers charter. The PM also announced the launch of Taxpayers Charter which is supposed to help build transparency in India’s taxation system. What is Taxpayers Charter The Taxpayers Charter will enshrine the rights of the taxpayer in a statute under the Income Tax Law to help build awareness in taxpayers and reduce harassment.  The Finance Minister Nirmala Sitharaman had first unveiled the ‘taxpayer charter’ in the budget session of 2020-21, on February 1. She had said that the charter will be adopted by Direct tax body CBDT and will ensure trust between a taxpayer and the administration. “We wish to enshrine in the statutes a ‘taxpayer charter’ through this budget. Our government would like to reassure taxpayers that we remain committed to taking measures so that our citizens are free from harassment of any kind," said Sitharaman in the report.

She also said that any tax system requires trust between taxpayers and the administration, which will be possible only when taxpayer''s rights are clearly enumerated.

 "With the objective of enhancing the efficiency of the delivery system of the Income Tax Department, I propose to amend the provisions of the Income Tax Act to mandate the Central Board of Direct Taxes (CBDT) to adopt a Taxpayers'' Charter," Sitharaman said.

According to a report by Times Now, the charter will not only enumerate the rights of the taxpayer but will also layout a time-bound process for dealing with the taxman and a redressal mechanism. Other countries such as the United States, Australia and Cana also has a charter that enumerates the rights of the taxpayer.

Watch what PM said: